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States That Raised Minimum Wage See Faster Job Growth, Report Says

New data released by the Department of Labor suggests that raising the minimum wage in some states might have spurred job growth, contrary to what critics said would happen.

In a report on Friday, the 13 states that raised their minimum wages on Jan. 1 have added jobs at a faster pace than those that did not. The data run counter to aCongressional Budget Office report in February that said raising the minimum wage to $10.10 an hour, as the White House supports, would cost 500,000 jobs.

"In the 13 states that boosted their minimums at the beginning of the year, the number of jobs grew an average of 0.85 percent from January through June. The average for the other 37 states was 0.61 percent.

"Nine of the 13 states increased their minimum wages automatically in line with inflation: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington. Four more states — Connecticut, New Jersey, New York and Rhode Island — approved legislation mandating the increases."

The AP notes: "[The] state-by-state hiring data, released Friday by the Labor Department, provides ammunition" to the camp in favor of raising the minimum wage.

"Economists who support a higher minimum say the figures are encouraging, though they acknowledge they don't establish a cause and effect. There are many possible reasons hiring might accelerate in a particular state.

" 'It raises serious questions about the claims that a raise in the minimum wage is a jobs disaster,' said John Schmitt, a senior economist at the liberal Center for Economic and Policy Research. The job data 'isn't definitive,' he added, but is 'probably a reasonable first cut at what's going on.' "

There are competing schools of thought among economists on the impact of raising the minimum wage. As The Washington Post notes: "Some studies, notably those lead by UMass Amherst economist Arin Dube, argue that there are no adverse employment effects from small increases in the minimum wage. Other studies, notably those lead by University of California Irvine economist David Neumark, argue there is an adverse effect."

The Economist says: "America's minimum wage has long been low by international standards, equalling just 38% of the median wage in 2011, close to the lowest in the OECD. Congress changes it only occasionally, and in the interim inflation eats away its value. The wage was last raised, to $7.25 per hour, in 2009. Since then its real value has slipped back to where it was in 1998."

One issue is that it has somehow become unacceptable for companies/shareholders/CEOs to take a hit when the economy gets bad which is normal and expected...that it's acceptable for them to avoid suffering anything during a downturn by cutting pay, benefits, raising costs on essentials like fuel/energy instead of taking the hit like everyone else. In fact, many give CEOs huge bonuses during these times at the expense of the workers who help the company survive.

It keeps the working class stagnant and therefore the economy too...It's like cutting off your nose to spite your face.

One issue is that it has somehow become unacceptable for companies/shareholders/CEOs to take a hit when the economy gets bad which is normal and expected...that it's acceptable for them to avoid suffering anything during a downturn by cutting pay, benefits, raising costs on essentials like fuel/energy instead of taking the hit like everyone else. In fact, many give CEOs huge bonuses during these times at the expense of the workers who help the company survive.

It keeps the working class stagnant and therefore the economy too...It's like cutting off your nose to spite your face.

Kool Aid is nasty and I don't buy it...I find it better to bring whole foods into our family rather than waste money on processed crap. It's better for local producers too since I belong to a food co-op. My food purchases actually help create local jobs/businesses. Purchasing Kool Aid doesn't do that. I have been known to use it for paint/pigment in crafting projects as its a lot cheaper than dye and just as permanent.

do you believe anything the goverment says? raising wages is going to make the cost of everything go up. When I started working the min wage was 3.15 and gas was .67 a gallon. now the wage is 7.25 and gas is balancing at about 3.50 gallon. when I moved out at 18 rent was 100 for a 1 bedroom. now you can't get one for less than 550.00. milk was 2.15 when I had my oldest 25 yrs ago now it is $5 a gallon. so raising it to $12 an hour will make rent almost double. figure this, if you make 12.00 an hour can you afford almost a $1000 a month rent for a one bedroom? lets do the math, 12.00 x 40x 4equals $1920 a month. lets say a $400 car payment. car insurance will go up, lets go light $300 for car insurance full coverage, this gives you 300 to cover your water, electric and both of these will go up, gas, food, which will go up cause gas will go up. state has more people moving there because all states haven't raised the wages. so yes they are making more money, but when other states follow suit everything will go up.

anything you buy from this state is going to be higher than buying it from a state that wages are lower in. it will be almost double to purchase the same thing made in this state. so people will take their business to lower paying states. so all these new wonderful jobs they are coming up with will be laying off their workers due to lack of business. sure it is a win win. when all is said and done $12.00 will be the poverty level. and anyone making $12 will need food stamps. when I was little double bubble was .02 now it is over a nickle. DO you really buy everything the goverment tells you? They are running a sale on swamp land in florida. you can buy it cheap. :)

Quoting PamR:

Is this it? Do you have any points to mark about why it's better not to raise the minimum wage?

speaking as a government skeptic with a different perspective on this....so I'm going to join you in tin foil hat land. LOL.

I have little faith in our corporatocracy as their loyalty is to themselves and those who bought them...if even their own bought and paid for number crunchers can't make it look like raising the minimum wage is a bad idea in their own report, then you have to give it credit. Why would they manufacture a report that doesn't support making their masters richer?

It's hard to hide an economic shift.

Quoting opinionatedmom:

do you believe anything the goverment says? raising wages is going to make the cost of everything go up. When I started working the min wage was 3.15 and gas was .67 a gallon. now the wage is 7.25 and gas is balancing at about 3.50 gallon. when I moved out at 18 rent was 100 for a 1 bedroom. now you can't get one for less than 550.00. milk was 2.15 when I had my oldest 25 yrs ago now it is $5 a gallon. so raising it to $12 an hour will make rent almost double. figure this, if you make 12.00 an hour can you afford almost a $1000 a month rent for a one bedroom? lets do the math, 12.00 x 40x 4equals $1920 a month. lets say a $400 car payment. car insurance will go up, lets go light $300 for car insurance full coverage, this gives you 300 to cover your water, electric and both of these will go up, gas, food, which will go up cause gas will go up. state has more people moving there because all states haven't raised the wages. so yes they are making more money, but when other states follow suit everything will go up.

anything you buy from this state is going to be higher than buying it from a state that wages are lower in. it will be almost double to purchase the same thing made in this state. so people will take their business to lower paying states. so all these new wonderful jobs they are coming up with will be laying off their workers due to lack of business. sure it is a win win. when all is said and done $12.00 will be the poverty level. and anyone making $12 will need food stamps. when I was little double bubble was .02 now it is over a nickle. DO you really buy everything the goverment tells you? They are running a sale on swamp land in florida. you can buy it cheap. :)

Quoting PamR:

Is this it? Do you have any points to mark about why it's better not to raise the minimum wage?

well one of us is right and one of us is wrong. time will tell who. I don't believe a tenth of what the goverment says personally.

Quoting NWP:

Inflation is always rising...wages, not so much.

speaking as a government skeptic with a different perspective on this....so I'm going to join you in tin foil hat land. LOL.

I have little faith in our corporatocracy as their loyalty is to themselves and those who bought them...if even their own bought and paid for number crunchers can't make it look like raising the minimum wage is a bad idea in their own report, then you have to give it credit. Why would they manufacture a report that doesn't support making their masters richer?

It's hard to hide an economic shift.

Quoting opinionatedmom:

do you believe anything the goverment says? raising wages is going to make the cost of everything go up. When I started working the min wage was 3.15 and gas was .67 a gallon. now the wage is 7.25 and gas is balancing at about 3.50 gallon. when I moved out at 18 rent was 100 for a 1 bedroom. now you can't get one for less than 550.00. milk was 2.15 when I had my oldest 25 yrs ago now it is $5 a gallon. so raising it to $12 an hour will make rent almost double. figure this, if you make 12.00 an hour can you afford almost a $1000 a month rent for a one bedroom? lets do the math, 12.00 x 40x 4equals $1920 a month. lets say a $400 car payment. car insurance will go up, lets go light $300 for car insurance full coverage, this gives you 300 to cover your water, electric and both of these will go up, gas, food, which will go up cause gas will go up. state has more people moving there because all states haven't raised the wages. so yes they are making more money, but when other states follow suit everything will go up.

anything you buy from this state is going to be higher than buying it from a state that wages are lower in. it will be almost double to purchase the same thing made in this state. so people will take their business to lower paying states. so all these new wonderful jobs they are coming up with will be laying off their workers due to lack of business. sure it is a win win. when all is said and done $12.00 will be the poverty level. and anyone making $12 will need food stamps. when I was little double bubble was .02 now it is over a nickle. DO you really buy everything the goverment tells you? They are running a sale on swamp land in florida. you can buy it cheap. :)

Quoting PamR:

Is this it? Do you have any points to mark about why it's better not to raise the minimum wage?

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